Press Release: WTO condemns US tax subsidies; EU calls on US to end illegal tax breaks for Boeing, others

The WTO Appellate Body on 13 February 2006 backed EU condemnation of US federal tax subsidies for exporters in the FSC dispute. A WTO Panel had previously found in favour of the EU by concluding that despite some changes to its domestic legislation the US had yet to abide by earlier rulings and recommendations of the WTO Dispute Settlement Body on its payments of export tax subsidies preserved in the 'transition' and 'grand-fathering' provisions of the revised Jobs Act that have been judged to violate WTO rules.

WTO: Trade Topics: Dispute Settlement: The Cases: Case DS108, United States - Tax Treatment for 'Foreign Sales Corporations' http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds108_e.htm

European Commission: Memo: MEMO/06/72, Foreign Sales Corporation: FAQs, 13.2.06 http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/06/72&format=HTML&aged=0&language=EN&guiLanguage=en

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